New Jersey (NJ) Lawsuit Loans

Updated on 8/9/2021

This article helps plaintiffs and attorneys alike learn more about lawsuit loans and alternatives in New Jersey. Below you will find the following information:

Lawsuit loan alternatives in New Jersey

Lawsuit loans are expensive. Plaintiffs in New Jersey should exhaust all other options before seeking legal funding. Check out the local resources below for some ideas:

  • New Jersey: Financial Assistance For Families – this program provides a wide range of resources for low-income families, including child care subsidies, children’s health insurance, WIC benefits, and Temporary Assistance for Needy Families (TANF).
  • Low Income Home Energy Assistance (LIHEAP) – LIHEAP offers financial grants to reduce the cost of energy use for low-income New Jersey residents.
  • New Jersey Housing Resource Center – this agency provides rental assistance in several different forms, including Section 8 housing vouchers, State Rental Assistance Program, Housing Opportunities for People with AIDS (HOPWA), and Veterans Affairs Supportive Housing (VASH), as well as homelessness and eviction protection.
  • NJ Medicaid – Medicaid in New Jersey provides health insurance to low-income residents unable to obtain insurance through other pathways.
  • NJ Supplemental Nutrition Assistance Program (SNAP) – SNAP programs offer vouchers to families in need that can be used to purchase food.

Lawsuit funding laws, regulation and relevant ethics opinions in New Jersey

New Jersey state law does not currently limit lawsuit funding and explicitly allows it for contract claims. The latest bill that seeks to regulate lawsuit loans was introduced in February of 2020 but has not yet passed. Common law champerty and maintenance doctrines do not apply in the state. The New Jersey State Bar does not allow lawyers to lend to clients, but allows attorneys to help clients seek funds from a third-party.

Laws regarding lawsuit loans in New Jersey

New Jersey has a Consumer Litigation Funding Act proposed on February 24, 2020 that has not yet been signed into law. This bill seeks to regulate consumer litigation funding providers. If passed, the bill would require an interest rate cap of 40% per year and a maximum one-time fee of $500 per transaction. State law in New Jersey currently allows lawsuit loans for contract claims.
Source: Consumer Litigation Funding Act

Legal funding case law in New Jersey

In Weller v. Jersey City H & P St. Ry. Co. the court stressed that maintenance and champerty doctrines never prevailed in New Jersey.
Source: Weller v. Jersey City H & P St. Ry. Co.

Can a lawyer lend money to a client in New Jersey?

While in pending litigation, New Jersey attorneys cannot grant funding to plaintiffs. However, they can cover the costs of litigation for impoverished clients, or advance the expenses to the end of the case.
Source: New Jersey Rules of Professional Conduct 1.8(e)

Can attorneys help clients receive lawsuit loans in New Jersey?

A lawyer may help a client obtain financial assistance from a lawsuit loan company so long as the attorney does not have a financial interest in and is totally independent of the lending company.
Source: New Jersey Advisory Committee on Professional Ethics Opinion 691

Lawsuit loan companies serving New Jersey

Recommended lawsuit loan companies funding New Jersey residents

US Claims Logo

US Claims offers some of the lowest, non-compounding rates in the industry. Many companies claim to offer “the lowest rates in the industry” – we recommend comparing them against an offer from US Claims. to see for yourself.

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Thrivest Link Legal Funding Logo

Thrivest Link Legal Funding offers fair terms with a fast, efficient funding process. Many companies claim to offer same-day or 24-hour lawsuit loans but Thrivest Link Legal Funding often actually makes it happen.

View Thrivest Link Legal Funding’s profile

Lawsuit loan companies located in New Jersey

Other pre-settlement lawsuit loan companies serving New Jersey residents